General Electric Company (NYSE:GE) released their quarter 3 earnings report and easily beat Wall Street estimated forecasts. This is despite lower orders in industrial products segment which includes jet engines, locomotives and oil-production equipment. The company intends to focus more on the industrial segment, refocusing on manufacturing. Shares of the company surged more than 3% during the day.
The industrial conglomerate’s earnings have shown an increase in profit margins have increased 17.3%, comparing to 16.3%. The company’s earnings and revenue were lower this quarter than same period last year - GE reported $2.51 billion in earnings, down from $3.54 billion. Revenue for the third quarter totaled $31.68 billion, down 1% from $32.1 billion last year. Yet, the forecast were lower. A survey by Reuters showed that Wall Street analysts forecasted revenues of $28.65 billion.
One of the reasons for the company’s better than expected performance is the successful attempts of General Electric to go back to its industrial manufacturing roots, making large industrial equipment, and pushing aside other ventures. Recently the company sold GE Capital's assets, which included $26.5 billion in real estate assets.
Selling real estate assets was the first step in the company’s restructuring process. Now the GE is planning to additional $200 billion of their financing division, moving further away from financing.